Following a request from law enforcement, the largest global crypto exchange by transaction volume, Binance, is blocking a company account with more than $1 million in virtual assets.
According to an announcement from Binance, it has suspended the account of a Tezos (XTZ) services provider that included $1 million in digital currencies.
Moreover, the tool developer, BakingBad, as revealed by Binance, is attempting to make an inaccurate statement to the crypto community. For emphasis, the exchange noted that the firm is trying to release misleading information by blaming Binance for its suspension.
Binance Complied with Law Enforcement Request
According to the crypto exchange giant, it restricted the account of BakingBad following a request from law enforcement. However, the firm claimed that the tool developer was aware of the request as it had been warned several times.
Accordingly, Binance is required to comply with the directive, which is required of any other exchange. Binance added that the offender had been provided a contact form via live chat on three occasions last month.
Commenting on the incident, BakingBad revealed that it had tried to retrieve its account using the contact form issued by Binance. However, it has not gotten a response from the exchange.
According to the statement from BakingBad, its corporate business account has been banned by Binance without prior reason since July 1. In addition, the platform disclosed that Binance had reduced its balance to zero.
As a result, the company reiterated that it would do anything to inform its community, but Binance should be avoided in the meantime.
Moreover, it sent roughly five requests through the chat support feature. In addition, the firm has made it known in support on each occasion. Despite knowing that the expiration period is 20 days, Binance has yet to respond to its requests. Therefore, it appears that Binance has made its final decision.
Binance has clarified that it is not in control of the process and that BakingBad must cooperate with the regulators if it wants its accounts restored.
Binance Push for Regulatory Compliance
The crypto exchange giant is quickly making compliance with authorities a priority for its operation. Decision makers at Binance are doubling up their efforts to ensure compliance. It would also seek to establish a unit to oversee its compliance drive and set the company up for its next growth phase.
Moreover, the company has revealed that it has committed huge resources over the past year to meet regulatory demands. Accordingly, it aims to prevent unforeseen issues with regulators from all countries.
It is also committed to using its position to prevent illicit activities like money laundering and fraud on the global stage.
The exchange has been trying to keep up with the evolving regulatory demands of its industry. Thus, it has implemented measures like user identity verification and knowing your customer (KYC).
Binance intends to sway the crypto industry to its platform, and it is not surprising why it is the leading crypto exchange.
